Nifty snaps five-day losing streak; banks, auto, realty stocks gain

It was a broad-based rally as Nifty Midcap and Nifty Smallcap surged nearly a per cent higher. Moreover, India VIX crashed over 6 per cent.

Market update at 3.30 PM: It has been a sign of relief for the bulls as Nifty recovered about 450 points from its day’s low to end at 17,277, up by 0.75 per cent. It was a broad-based rally as Nifty Midcap and Nifty Smallcap surged nearly a per cent higher. Moreover, India VIX crashed over 6 per cent.

Maruti Suzuki surged in the last hour to close over 7 per cent higher while Axis Bank shot up over 6 per cent during the day. However, Wipro and Bajaj Finserv were weak today despite good sentiment in the market.  

All the sectoral indices, apart from Nifty IT, closed positively with Nifty PSU Bank surging as high as 4 per cent. Nifty Bank, Nifty Auto, Nifty Realty closed about 2 per cent each. With such bullishness, it seems that the worst is over as we head towards a holiday tomorrow. Meanwhile, the global markets will be keenly watched in anticipation of a reversal.  

Market update at 1 PM: Nifty is trading near 17,100 and is unable to find momentum on the upside. The index has hit a high of 17,200 and receded over 100 points. It is currently down by half a per cent while Sensex has lost over 200 points.  

However, the broader indices, such as Nifty Midcap and Nifty Smallcap, are trading flat with volatility.  

The top sectors supporting the index are Nifty PSU Bank, which has surged nearly 3 per cent along with Nifty Bank, Nifty Media, and Nifty Metal. However, Nifty IT continues to disappoint as the index has slipped over a per cent.  

After five days of aggressive selling, we see Nifty taking support around the 16,800 level and recovering about 300 points. Thus, 16,800 will remain strong support. Meanwhile, the level of 17,200 happens to be major resistance. If the index trades above this level, we might see a good short-covering rally soon.  

Market update at 9.50 AM: Sharp recovery has been observed in Nifty as it’s currently trading above 17,100. The index hit a low of 16,837 within the first few minutes of the trade but recovered over 200 points. The recovery is positive as all the sectoral indices are trading in green. The top supporters among the sectoral indices are Nifty PSU Bank and Nifty Metal, as both are trading above a per cent.  

Axis Bank jumped more than 4 per cent after better-than-expected results while JSW Steel is also trading nearly 2 per cent higher. The 17,000 and 16,800 levels emerged as a good support zone while the rest of the day is expected to be optimistic for the index.  

Pre-market update: Last night, the US markets traded with a lot of volatility. A dramatic recovery in the US markets in the last hour saw their market close positively. However, the fear doesn’t seem to be gone as Asian markets have opened in deep red. SGX Nifty indicates a loss of about 125 points. 

On the last trading day, the FIIs sold heavily for about Rs 3,751 crore while DIIs bought for just Rs 75 crore, which led to the free fall in the market. 

Bank Nifty held on for most of the part before collapsing about 600 points. Thus, the index would be in focus if any recovery takes place. 

Crude Oil has slipped another 1 per cent while natural gas is up by a per cent. Meanwhile, the precious metals are trading mixed. 

The key earnings today include Maruti, Pidilite Industries, United Spirits Limited, Torrent Pharmaceuticals, and Federal Bank. These stocks will be in focus today.